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Tuesday, January 08, 2008
Eastfield And Lysander Shareholders Approve Spin Off
Plan
Eastfield Resources Ltd. (TSX-V: ETF)
("Eastfield") is pleased to confirm that progress is being made in
implementing the Plan of Arrangement to which common shares in a new company,
Lorraine Copper Corp. ("Lorraine Copper") will be received by
shareholders. Lorraine Copper is expected to trade on the TSX Venture Exchange
(TSX-V: LCC) early in 2008. Under Plans of Arrangement approved by
shareholders of Eastfield and Lysander Minerals Corporation
("Lysander") (TSX-V: LYM) the interests of the Lorraine-Jajay
property optioned to Teck Cominco Limited ("Teck Cominco") (TSX:
TCK.B) will be consolidated into Lorraine Copper.
The 30,658 hectare Lorraine-Jajay copper-gold property is located in
north-central British Columbia in the Quesnel-Stikine Terrane and is host to
alkalic porphyry copper-gold-silver occurrences. It is approximately half way
between Terrane Metals Corp.'s (TSX-V: TRX) Mt. Milligan deposit and
Northgate Minerals Corp.'s (TSX: NGX) Kemess mine.
William Morton, President and CEO of Eastfield stated, "We are very
excited about the birth of Lorraine Copper. This transaction will allow the
market to better value the Lorraine-Jajay project since it will be the first
time that a single emerging junior mining entity will own a 100% interest. We
are also excited about being able to focus more on existing projects that
will remain in Eastfield such as the Okeover copper-molybdenum project and
the new Zymo Copper-Gold-Silver project near Smithers."
Under the terms of a Participation Agreement entered into in 2005 by
Eastfield, Lysander and Teck Cominco, Teck Cominco can earn a 51% interest in
the Lorraine-Jajay property by completing $9 million in exploration by Dec.
31, 2010. Teck
Cominco has the option to earn a further 9% by funding and completing a
feasibility study and a further 5% by arranging project financing. On the
assumption that Lorraine-Jajay project results and economic considerations
remain positive, Lorraine Copper will not need significant additional capital
beyond what is required for corporate overhead and could conceivably proceed
to mine development with a 35% interest in the project without significant
additional capital.
As part of the reorganization of Eastfield and Lysander creating Lorraine
Copper both companies contributed $150,000 to provide Lorraine Copper with
initial operating capital of $300,000. Eastfield and Lysander will each
receive 50% of the issued shares in Lorraine Copper and will distribute these
shares pro rata to their respective shareholders. For Eastfield and Lysander
it will be business as usual after the spin-off with each company going their
separate ways with their other mineral properties
The 2007 program at Lorraine-Jajay included the completion of approximately
75 line kilometres of deep penetrating induced polarization survey and the
completion of 5 diamond drill holes (1,603 metres total). Results for the
2007 program are pending. A significant drill program is anticipated for
2008.
About Eastfield Resources
Since its inception in 1987, Eastfield Resources has utilized a successful
business strategy that involves securing third party exploration financing
the majority of its projects. At present, Eastfield has seven projects
located in British Columbia and one in Nevada. Optioned projects include
Okeover, optioned by Prophecy Resource Corp. (TSX-V: PCY); Iron Lake,
optioned by Avion Resources Corp. (TSX-V: AVR); and the soon to be spun-off
Lorraine-Jajay, optioned by Teck Cominco Limited.
On behalf of the Board,
J. W. (Bill) Morton
President and CEO
Eastfield Resources Ltd.
Contact:
Paul Way, Business Development Manager
(604) 681-7913 or Toll Free: 888-656-6611
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release. This news release may contain
certain "Forward-Looking Statements" within the meaning of Section
21E of the United States Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact, included herein are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from the Company's expectations are disclosed in
the Company's documents filed from time to time with the TSX Venture
Exchange, the British Columbia Securities Commission and the US Securities
and Exchange Commission.
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